A new nonlinear Fresnel volume tomography (FVT) method is proposed in which a gradient-guided approach is used to replace the conventional equation-solving method. An improved scattering-integral algorithm is used to compute the objective function gradient with respect to the model parameters and the diagonal Hessian. The key principle of this algorithm is the transformation of the gradient computation into an accumulation of multiple vector-scalar products, where each vector is the corresponding individual Fresnel volume kernel of a source-receiver pair. This implementation has several advantages over conventional equation-solving approaches. Firstly, neither the Fresnel volumes nor the Hessian matrix must be stored in memory in advance, thereby ensuring low memory requirements. Secondly, no large equations must be iteratively solved using a general inverse algorithm such as least-squares QR decomposition (LSQR), thereby ensuring a highly efficient inversion procedure. Thirdly, the steepest-descent direction is used to ensure stable convergence. Finally, and most importantly, the preconditioning of the steepest-descent direction, which is equivalent to achieving illumination compensation, can be conveniently performed. This proposed nonlinear FVT method is applied to both synthetic and field data to invert finite-frequency traveltimes of first-arrival waveforms for the near-surface velocity structure. Shallow accuracies comparable to or better than those obtained using the equation-solving FVT or ray-based tomography are achieved. Furthermore, both the memory requirements and computation time are reduced and deeper inversion results are obtained using the diagonal Hessian.